Beyond the Valley of Death: What MedTech Innovators Must Get Right

Introduction

Bringing a new medical technology to market is rarely a straight line. Despite groundbreaking ideas and promising prototypes, too many innovations stall in what’s often called the “Valley of Death” – the gap between development and adoption. 

Why? Because innovation in healthcare is about far more than building better technology. Success depends on understanding customers, proving value, and navigating a system that is complex, constrained, and sometimes resistant to change. 

Here are three areas every medtech innovator needs to master. 

Who Really is Your Customer in MedTech?

At first glance, this feels obvious. The customer is whoever benefits from the product. In medtech, that usually means the patient. But healthcare markets, especially the NHS, are more complicated than that. In reality, there are three distinct “customers” to consider – and their needs don’t always align. 

• The patient – The ultimate reason for innovating. Better health outcomes, improved quality of life, reduced risks. Patient impact is non-negotiable, but it is rarely enough, on its own, to drive adoption. 

• The user – Often a clinician, nurse, or healthcare worker, but sometimes a family carer or volunteer. Their priorities include ease of use, training needs, and willingness to change established practice. If users resist or cannot integrate the product into their workflow, even the most effective innovation risks failure. 

• The payor – The department or organisation footing the bill. In the NHS, this is often a procurement team or Integrated Care System (ICS), whose focus may be cost efficiency and system capacity, rather than gold-standard care alone. 

The reality is that the patient, user, and payor often have competing needs and motivations. Understanding all three – and shaping your value proposition accordingly – is essential for market success.

How to Prove the Real Value of Your MedTech Innovation?

Every medtech innovator knows they need to understand costs of R&D, manufacturing, and pricing. But healthcare economics is far more nuanced than simple cost-plus pricing. 

Procurement decisions are rarely about buying the cheapest option. Instead, they hinge on two questions: 

• Is it cash releasing? – Does it directly save money, such as lowering purchase or maintenance costs, reducing length of stay, or enabling fewer staff per procedure? 

• Does it increase capacity? – Does it allow the system to do more with the same resources? For example, shortening procedure time, shifting care from hospital to community, or preventing repeat interventions. 

True impact is often measured in capacity gains rather than immediate cash savings. A device that frees up operating theatre time, enables procedures in outpatient settings, or prevents readmissions may have more value than a marginally cheaper alternative. 

This is where health economics has become critical. Beyond traditional ROI calculations, health economic analysis provides tools to quantify operational efficiencies, quality-adjusted life years (QALYs), and broader system-level impacts. With NHS resources stretched and expectations rising, procurement teams and investors alike increasingly expect this evidence. 

It’s Not About the Tech

It feels counterintuitive, but medtech innovation isn’t really about the technology. Yes, your  medical device must work, meet regulatory standards, and be safe. But success hinges on adoption. And adoption depends on people and systems. 

Innovation should be about enabling healthcare to be delivered differently: in new settings, through new workflows, sometimes by different people. A sharper scalpel or cheaper syringe is rarely enough. 

That’s why innovators must look beyond the product itself: 

• System fit – How does the innovation integrate into existing care pathways? Does it require workflow redesign, new infrastructure, or cultural change? 

• User experience – How does it affect job satisfaction, workload, and training needs for clinicians and carers? 

• Change management – Healthcare systems are famously resistant to imposed change. Innovations that are co-designed with users and supported by training and evidence stand a far better chance of being adopted. 

• Regulatory and professional standards – Beyond CE/UKCA marking or FDA clearance, alignment with clinical guidelines and professional norms is critical for acceptance. 

As one NHS leader recently put it: “Technology is the easy part – it’s people and process that are hard.” 

Can Anyone Succeed?

There’s no simple recipe for success. But innovators who start by identifying their three customers, building a credible value case, and designing for adoption – not just invention – give themselves a much stronger chance. 

Too often, these considerations are treated as an afterthought, explored only once technology is already built. By embedding them from the beginning, innovators can avoid the Valley of Death, attract investment, and, most importantly, bring meaningful solutions to patients faster. 

It’s not enough to build something brilliant. You also have to make it usable, valuable, and adoptable – in the real world of healthcare. 

Disclaimer. The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the official policy or position of Test Labs Limited. The content provided is for informational purposes only and is not intended to constitute legal or professional advice. Test Labs assumes no responsibility for any errors or omissions in the content of this article, nor for any actions taken in reliance thereon.